uppose nac = 3\%, ne=91, and b=1.7. a. What is no, the required rate of return on Stock i? found your answer to one decimal place. b. 1. Now suppose not increases to 4%. The siope of the 5ML remwins constant. How would this affect ru and n ? 1. Both ru and fill incresse by 1 percentage point. II n will remain the same and n will increase by 1 percentage point. II. In will increase by 3 percentage point and n wal remain the same. IV. Both na and n will decrease by 1 percentage point. v. Beef not and n will remain the same. 2. Now suppose nhe decreases to 2%. The slope of the SML remains constant. How would this affect ne and n ? I fir will remain the same and n will decrease by 1 percentage point 1t. Both ni and nw il increase by 1 percentage point. 1if. Beth ne and n wil remain the same. iv. doth ne and niwal decrease by Li percentage point. Q. ruwir decrease by i percentage point and a will remain the same: The ries in will be H. The new h wil be